Replies to post #2198 on Mining Company research board

[gitreal]

Isobar - 1manband gave you a perfect example - PCFG. Completely permitted operation, and lots of wonderful new infrastructure, and a total scam.

I have seen it many times myself - mining scams will spend a lot of money to create the image of a legitimate operation. They will build offices, process areas, maintenance buildings, "proprietary extraction equipment", and hire consultants to do some basic permitting. Creating a "story" is important, and some money spent upfront will buy a lot of loyal investors who will defend the company down to their last dollar. Then, when there is still no gold, and the share price has dropped 99%, they will finally realize they've been had.

Depending on how much money you have invested, I'd recommend contracting with a registered mining engineer or geologist to look over the data, and maybe do another site tour. I'd show up unannounced, if possible, and it may have a different appearance than on the day you were there before (LOL).

Take it from folks on this board who have been in the mining business a long time, URHG is no different than any of the other hundreds of desert dirt scams. 1manband walked you through the interwoven connections between URHG and other documented scammers. Good luck.

[1manband]

And they will be SEC reporting by mid January at the latest

No, that is not how it works.

Even if the audits were complete, the registration were drafted and they filed it tomorrow, (a Form 10, for example), the SEC review process would be, on average, 3-6 months. Months, not weeks. The SEC makes Companies work for it - they just don't hand out a free pass to registration once a non-reporting pink sheet company gets an annual audit, which is why being fully reporting actually has significant meaning. The Form 10, if not withdrawn, wouldn't even become automatically effective for 60 days, and the SEC comment period could, and almost certainly would, extend beyond that. SEC reporting by mid-January? I think not.

Almost every non-SEC reporting pink sheet company claims it will, at some point, become registered with the SEC, but very few do. They make that claim because investors (rightfully) hold SEC reporting companies in much higher regard than non-SEC reporting companies, most of which are scams or trash. Legitimate companies report to the SEC, and those that are not, don't. Many non-reporting companies are not reporting because they don't want SEC scrutiny - it is much easier to lie, cheat and steal when they are dark and don't have to submit anything to review by auditors and regulators. And, some simply cannot meet the reporting requirements for various reasons. It remains to be seen in which category URHG falls into.

And, I believe I answered your question about producing juniors. No legitimate public company operates a placer mine - with the additional costs of public company compliance, even for a non-reporting pink sheet company, the numbers just don't make sense.

[1manband]

To answer your question, the aquisition of Noble, now United Milling is just to add another MAJOR revenue stream. That plant is to process the ore of other mining companies

That makes zero sense. Mines in the area are closing left and right. There are NO sources of ore that need third-party processing. Noble couldn't make a go of it at $1800+ an ounce gold (assuming they even tried) when the Nevada mining industry was booming. Why in the world would that have changed now that they are in a deep slump at 2/3rds the price?

[jstorm]

Just glancing at URHG, it would seem that it is not an outright scam like many others, but that doesn't make it a good investment either LOL.

This is one of those companies, much like NBRI, that has adapted to the "production at any cost" mentality.

Basically, these guys just want to be able to say they are in production. They'll figure out if they can actually make money at it later.

No feasibility or economic studies whatsoever to prove they can have a profitable mining operation because they skipped all the steps required to do those studies. Complete reliance on historical data that may or may not be the case today.

It is a recipe for shareholder disaster. Its a DOG stock.